The Endpoints of an Economy's Production Possibilities Frontier (PPF)for Goods

question 34

Multiple Choice

The endpoints of an economy's production possibilities frontier (PPF) for goods X and Y are: (2,000X,0Y) and (0X,500Y) .Furthermore,the opportunity cost between these two goods is always constant.Which of the following combinations of the two goods,X and Y,lies on the economy's PPF?

• A) 400 units of X and 200 units of Y
• B) 600 units of X and 250 units of Y
• C) 400 units of X and 150 units of Y
• D) 1,000 units of X and 250 units of Y
• E) 300 units of X and 150 units of Y

---

Definitions:

Activity Cost Pools

Aggregations of all the overhead costs associated with specific activities, used in activity-based costing.

Customer Margin

The profit generated from a particular customer, calculated by subtracting the costs associated with serving that customer from the revenue they generate.

Serving Customers

The activities involved in providing products or services to customers effectively.

Activity Cost Pools

Accumulations of costs grouped by similar or related activities, used in activity-based costing to allocate costs more accurately.